BUZZ-CoreWeave shares surge after its $3.7 billion convertible bond issuance is expanded

September 18 - ** Artificial intelligence cloud service provider CoreWeave (CRWV.O) shares rose 0.9% to $80.60 in pre-market trading on Friday after the company's convertible bond offering was oversubscribed

** CRWV announced (link) the pricing of a $3.7 billion offering of convertible bonds (CBs) with a coupon rate of 2.875%, due April 1, 2033

** The offering size was raised from $3 billion; the conversion price was set at $97.85, which is 22.5% higher than Thursday’s closing price of $79.88

(link) ** On Thursday, CRWV shares closed down about 4% after the company (link) issued the above-mentioned convertible bonds to meet general corporate financing needs, and said it plans to sell up to 35 million shares through an at-the-market (ATM) offering program as part of its move to boost its credit rating to investment grade

** Based on the current share price, this ATM plan could raise another $2.8 billion

** CRWV plans to use about $498.8 million of the net proceeds from the convertible bonds (CBs) to cover the cost of capped call transactions; the cap price of $199.70 represents a 150% premium over the previous trading day’s closing price

** The company also said earlier Thursday that in the third quarter it signed short-term customer computing capacity contracts, priced at an annualized $40 million per megawatt; as of August 11, its contracted power capacity increased to about 4.2 gigawatts from about 3.7 gigawatts at the end of June

** As of Thursday's close, CRWV shares had gained about 12% year-to-date

** According to data from London Stock Exchange Group (LSEG), the average rating from 40 analysts is “buy,” with a median target price of $150

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